In July this year, the purchasing managers index (PMI) for the Chinese steel sector was at 49.9 percent, remaining stable compared to June this year, as announced by the China Steel Logistics Committee (CSLC), which is part of the China Federation of Logistics and Purchasing (CFLP).
In July, the production index for the Chinese steel sector stood at 49.9 percent, 2.6 percentage points higher than that recorded in June.
In July, the new order index stood at 49.8 percent, 1.7 percentage points lower than that recorded in June, slightly lower than 50.0 percent, reflecting the stability of demand in the given month.
Moreover, in July, the index of raw material purchase prices stood at 69.9 percent, 27 percentage points higher than in June. In July, prices of raw materials indicated a rising trend amid improved transaction activities.
Demand for steel in August is expected to expand amid Chinese policymakers’ determination to boost local demand, for instance, issuing policies to lift the restrictions on purchasing houses in several megacities, implementing policies for rebuilding villages inside megacities, and stimulating the demand for vehicles and home appliances. However, the high temperatures and occasional typhoon weather will negatively affect the demand for steel. It is thought that finished steel prices may move sideways in August and move up in September and October.
